Which of the Following Statements Is (Are) True? I

question 320

Multiple Choice

Which of the following statements is (are) true? I. The decision lag is typically longer than the information lag.
II) Lags associated with the crafting and implementation of discretionary fiscal policy can lead to destabilizing impacts on the economy.
III) Data has been collected, trends identified, and an appropriate discretionary policy has been selected, leaving only the delay related to implementation preventing the policy from having an impact on the economy.

• A) I only
• B) II only
• C) III only
• D) I, II, and III.

---

Definitions:

Income

Funds received routinely through work or investing activities.

Income Elasticity

An indicator of the degree to which demand for a product or service shifts following a variation in consumer income.

Housing

The provision of accommodation, typically through buildings or structures where individuals or families live.

Income Increase

A rise in the amount of money earned by an individual or collected by an organization, often measured on a monthly or yearly basis.